Borders Closure: Nigeria Image At Stake, Sending Wrong Signals Worldwide- OGUNCCIMA

By ABIODUN JIMOH, ABEOKUTA

Ogun State Chamber of Commerce Industry Mines and Agriculture (OGUNCCIMA) has revealed that the prolonged border closure would continue to send wrong signals to the rest of the continent and the world at large about Nigeria’s potential to lead the continent

The Chamber however registered its strong displeasure towards the prolonged land border closure for trade activities.

President of the Chamber, Alhaji Wasiu Babatunde Olaleye disclosed this at a press briefing held in Abeokuta recently noting that the continuous closure of borders has been effective since August 2019.

Olaleye added that the major objective of curbing rice smuggling actually have been causing serious impediment for businesses in the state and same with other states along these borders.

He said: “While we applaud the government’s efforts towards promoting financial support for SMEs, OGUNCCIMA registers its strong displeasure towards the prolonged land border closure for trade activities. If the move is not partially reversed or adjusted, it will jeopardize the government’s good effort towards SMEs.

“Local and international trades are the reasons for businesses to exist. Once these purposes have been taken from them, it portends even more danger to the economy than anything else.

“OGUNCCIMA have committed towards development of SMEs for export activities in recent years, with the support of our international partner and NEPC, we have facilitated the processing of ECOWAS Trade Liberalization Scheme registration for dozens of SMEs to enable them to trade along the ECOWAS corridor.

“This would have boosted commercial activities at the same time generate revenue for the government. Instead what we have are businesses that are struggling for survival when they cannot realize their production and sales capacity.

“Businesses grow when they enjoy economies of scale however; in these parts we have been disadvantaged. For some businesses, the raw materials for production are sourced in the rural places that are along the border areas where government officials are being deployed.

“The activities of these officials in inhibiting trade between those rural areas and urban centres are demoralizing to the farmers and businesses and injurious to the economy at large.

“Our Chambers of Commerce have had to intervene several times in disputes between the farmers and traders in these rural areas and the uniform officers deployed to these regions on produce such as maize, palm kernel etc. after being wrongly accused of smuggling them and telling them explicitly.

“Despite governments’ relief programs and interventions, it is no news that SMEs are incurring losses somehow than gains and as released by CBN in the credits survey that default towards unsecured loans for businesses are increasing when companies cannot harness their potentials in commercial activities.

“The economy at large stands to greatly benefit from border reopening for economic activities in these trying times than having it closed. Opening the land border will signal to SMEs with potential export capacity to expand their production and this will generate employment and increased economic activities.

“Prices of commodities will not achieve equilibrium while it is being consumed locally and we won’t be utilizing our comparative advantage in our state.

“ECOWAS Trade Liberalisation Scheme agreement have covered most businesses and business activities that would be carried out on our land borders. We implore the government to honor the agreement.

“ACFTA agreement is another Pan-African project that Nigeria will stand to benefit greatly with the adoption of the right strategies. Prolonged border closure will continue to send wrong signals to the rest of the continent and the world at large about Nigeria’s potential to lead the continent.

“Lastly, we will implore the Federal Government of Nigeria to reconsider their position on the border closure before SMEs with export potentials that are barely surviving now ultimately cease to exist.

“Also, the impediments that Customs officials and security operatives pose to border towns in our state be looked into and curbed. The pandemic and recent crises have already caused loss of billions or trillions in our economy and there is no better time than to employ all measures to make sure that we revamp the economy and set it on the right track.”